Annex A.4 – Transport, Net Zero & Just Transition
Portfolio Responsibilities
This portfolio has the lead role in driving the Scottish Government’s commitment to deliver a Just Transition to net zero as well as providing a resilient, accessible and affordable transport network. This includes the cross-government co-ordination of net zero policy to drive down Scotland’s greenhouse gas emissions, building resilience to the impacts that the climate and nature crisis are having on our businesses and communities, environmental protection, sustainable development, and supporting a Just Transition all of which is delivered by Transport Scotland and core Scottish Government directorates along with a range of public bodies and agencies across transport, climate and environment.
The portfolio delivers a significant portion of the Scottish Government’s capital and infrastructure programme across both the transport network and Low Carbon/Net Zero programmes, including loans to support Heat in Buildings investment and encourage the switch to low carbon vehicles and bikes. As a result, it has been particularly impacted by the UK Government’s decisions to reduce funding of capital and financial transactions and has had to adapt spending plans accordingly, while continuing to deliver the Government’s policy priorities as well as ensuring a safe and resilient transport network.
Transport Scotland and its subsidiaries are focused on delivering the Scottish Government’s vision for transport as set out in the National Transport Strategy. This includes maintaining and safely operating our existing systems, providing funding to key public transport services including bus, rail, and ferries as well as maintaining and improving the trunk road network, including the A9 Dualling Programme. The portfolio will continue to encourage modal shift to public transport through initiatives like the Young Persons’ Free Bus Travel Scheme, with over 100 million free bus journeys made by people aged under 22 across Scotland, as well as making progress on new commitments to asylum seekers on bus and young people on ferries.
We provide funding to Network Rail in Scotland to deliver a significant programme of maintenance, renewals and enhancements, and we support the delivery of new vessels and port infrastructure to improve island connectivity. We will continue to take actions on net zero in the transport sector, through initiatives such as the Scottish Zero Emission Bus Challenge Fund and Community Bus Fund, the rolling programme of rail electrification, the vision for Scotland’s public Electric Vehicle Charging network and continued record investment in active travel to deliver a shift from driving to walking, wheeling and cycling for short everyday journeys.
We will focus our resources on particularly critical areas of our net zero ambition, such as heat in buildings and ensuring our public transport system is maintained to provide an alternative to car use. We recently launched our Heat in Buildings Bill consultation which focused on how we will decarbonise our homes and buildings and support people and businesses to improve energy efficiency and move to clean heating. This will not only help to cut one of our major sources of emissions but reduce the exposure of households and businesses to volatile gas prices.
Through the Just Transition Fund, we will continue to support ongoing pioneering projects in a range of sectors including offshore green hydrogen production and large-scale carbon sequestration and habitat restoration.
At COP28, we reaffirmed our commitment to addressing Loss and Damage, committing a further £2 million from our Climate Justice Fund, supporting vulnerable communities in Zambia, Rwanda, Malawi and elsewhere who are bearing the brunt of the impacts of the climate crisis.
We are investing in Scotland’s transition to a circular economy and programmes to reduce consumption and re-use our resources, modernise recycling and to decarbonise the disposal of waste, including major delivery programmes for extended producer responsibility and digital waste tracking. We will continue to provide funding to protect, restore and value nature, through our environmental regulators, to make sure we maintain a safe, healthy and sustainable environment for the people of Scotland.
Transport, Net Zero & Just Transition intended contributions to the National Outcomes
Primary National Outcomes
- Communities
- Economy
- International
- Environment
Secondary National Outcomes
- Poverty
- Children and Young People
- Education
- Fair Work and Business
- Health
- Culture
- Human Rights
For further information on the purpose of the portfolio budget, and contributions to national outcomes (including impacts of spend on equality of outcome) please refer to the relevant portfolio annex in the published Equality and Fairer Scotland Budget Statement.
Transport, Net Zero & Just Transition
Table A4.01: Spending Plans (Level 2)
| Level 2 |
2022-23 Budget £m |
2023-24 Budget £m |
2024-25 Budget £m |
| Energy Efficiency and Decarbonisation |
346.4 |
367.5 |
358.2 |
| Rail Services |
2,129.0 |
1,680.9 |
1,601.0 |
| Concessionary Fares and Bus Services |
413.9 |
425.7 |
429.7 |
| Active Travel, Low Carbon and Other Transport Policy |
380.2 |
348.6 |
307.8 |
| Trunk Road Network: Safety, Adaptation, Maintenance and Improvement |
876.4 |
801.2 |
1,011.4 |
| Ferry Services |
296.0 |
440.0 |
434.5 |
| Air Services |
88.5 |
83.5 |
89.3 |
| Environmental Services |
192.3 |
216.5 |
224.6 |
| Environmental Standards Scotland |
2.2 |
2.9 |
3.0 |
| Climate Change and Land Managers Renewables Fund |
49.8 |
79.9 |
41.2 |
| Scottish Water |
77.4 |
75.7 |
74.6 |
| Green Economy |
12.3 |
5.1 |
– |
| Total Transport, Net Zero & Just Transition |
4,864.4 |
4,527.5 |
4,575.2 |
| of which: |
|
|
|
| Total Fiscal Resource |
1,448.7 |
1,536.9 |
1,617.3 |
| of which Operating Costs |
25.7 |
27.4 |
30.1 |
| Non-cash |
295.2 |
312.0 |
365.8 |
| Capital |
3,051.9 |
2,616.9 |
2,593.7 |
| Financial Transactions (FTs) |
59.3 |
61.0 |
(2.2) |
| UK Funded AME |
9.3 |
0.7 |
0.6 |
Presentational Adjustments for Scottish Parliament Approval
| Level 2 |
2022-23 Budget £m |
2023-24 Budget £m |
2024-25 Budget £m |
| Highlands and Islands Airports Limited (NDPB Non-cash) |
(9.5) |
(9.5) |
(9.5) |
| Scottish Canals (NDPB Non-cash) |
(3.0) |
(2.7) |
(8.6) |
| Public Private Partnerships Adjustments |
(23.3) |
(25.4) |
(25.4) |
| Grants to Local Authorities |
58.4 |
58.4 |
51.7 |
| SEPA (NDPB Non-cash) |
(7.2) |
(5.2) |
(5.0) |
| Scottish Rail Holdings (NDPB Non-cash) |
(101.6) |
(118.7) |
(176.1) |
| National Park Authorities (NDPB Non-cash) |
(1.3) |
(1.4) |
(1.0) |
| NatureScot (NDPB Non-cash) |
(2.8) |
(2.9) |
(2.6) |
| Scottish Water loan repayments not included in Scottish Parliamentary budgets |
42.8 |
42.8 |
42.8 |
| Environmental Standards Scotland |
(2.2) |
(2.9) |
(3.0) |
| Total Transport, Net Zero and Just Transition |
4,814.7 |
4,460.0 |
4,438.4 |
| Total Limit on Income (accruing resources) |
600.0 |
Table A4.02 Energy Efficiency and Decarbonisation Spending Plans (Level 3)
| Level 3 |
2022-23 Budget £m |
2023-24 Budget £m |
2024-25 Budget £m |
| Energy Efficiency and Decarbonisation |
346.4 |
367.5 |
358.2 |
| Total Energy Efficiency and Decarbonisation |
346.4 |
367.5 |
358.2 |
| of which |
|
|
|
| Fiscal Resource |
50.0 |
55.1 |
53.7 |
| Non-cash |
– |
– |
– |
| Capital |
257.1 |
276.4 |
306.7 |
| Financial Transactions (FTs) |
39.3 |
36.0 |
(2.2) |
| UK Funded AME |
– |
– |
– |
Table A4.03: Rail Services Spending Plans (Level 3)
| Level 3 |
2022-23 Budget £m |
2023-24 Budget £m |
2024-25 Budget £m |
| Enhancement Projects |
247.0 |
155.8 |
146.9 |
| Rail Development |
2.0 |
– |
– |
| Rail Services |
1,453.0 |
1,083.1 |
965.7 |
| Network Infrastructure |
427.0 |
442.0 |
488.4 |
| Total Rail Services |
2,129.0 |
1,680.9 |
1,601.0 |
| of which |
|
|
|
| Fiscal Resource |
309.8 |
360.9 |
337.3 |
| Non-cash |
101.6 |
118.7 |
124.3 |
| Capital |
1,708.3 |
1,200.7 |
1,138.9 |
| Financial Transactions (FTs) |
– |
– |
– |
| UK Funded AME |
9.2 |
0.6 |
0.5 |
Table A4.04: Concessionary Fares and Bus Services Spending Plans (Level 3)
| Level 3 |
2022-23 Budget £m |
2023-24 Budget £m |
2024-25 Budget £m |
| Concessionary Fares |
310.6 |
359.3 |
370.4 |
| Smartcard Programme |
3.9 |
3.9 |
3.9 |
| Support for Bus Services |
99.4 |
62.5 |
55.5 |
| Total Concessionary Fares |
413.9 |
425.7 |
429.7 |
| of which |
|
|
|
| Fiscal Resource |
411.9 |
418.7 |
422.7 |
| Non-cash |
– |
– |
– |
| Capital |
2.0 |
7.0 |
7.0 |
| Financial Transactions (FTs) |
– |
– |
– |
| UK Funded AME |
– |
– |
– |
Table A4.05: Active Travel, Low Carbon and Other Transport Policy Spending Plans (Level 3)
| Level 3 |
2022-23 Budget £m |
2023-24 Budget £m |
2024-25 Budget £m |
| Agency Administration Costs |
54.7 |
26.5 |
29.2 |
| Scottish Canals |
26.4 |
26.2 |
32.6 |
| Strategic Transport Projects Review |
3.0 |
1.5 |
– |
| Support for Active Travel |
126.1 |
165.3 |
196.0 |
| Support for Sustainable Travel |
17.3 |
7.3 |
4.5 |
| Support for Freight Industry |
0.7 |
0.7 |
– |
| Future Transport Fund – Low Carbon |
129.9 |
99.4 |
36.0 |
| Edinburgh Tram Inquiry |
0.5 |
0.3 |
– |
| Travel Strategy and Innovation |
21.6 |
21.4 |
9.4 |
| Total Active Travel, Low Carbon and Other Transport Policy |
380.2 |
348.6 |
307.8 |
| of which |
|
|
|
| Fiscal Resource |
62.4 |
64.3 |
83.4 |
| Non-cash |
5.2 |
5.7 |
12.7 |
| Capital |
302.6 |
278.5 |
211.7 |
| Financial Transactions (FTs) |
10.0 |
– |
– |
| UK Funded AME |
– |
– |
– |
Table A4.06: Trunk Road Network: Safety, Adaptation, Maintenance and Improvement Spending Plans (Level 3)
| Level 3 |
2022-23 Budget £m |
2023-24 Budget £m |
2024-25 Budget £m |
| Road Improvement |
136.9 |
121.9 |
133.6 |
| Tay Bridge Authority |
2.6 |
8.1 |
9.7 |
| Queensferry Crossing |
1.8 |
– |
– |
| Critical Safety, Maintenance and Infrastructure |
435.2 |
372.6 |
524.7 |
| Roads Depreciation |
167.5 |
168.6 |
209.5 |
| Trunk Road Network PPP Payments |
132.5 |
130.0 |
133.9 |
| Total Trunk Road Network: Safety, Adaptation, Maintenance and Improvement |
876.4 |
801.2 |
1,011.4 |
| of which |
|
|
|
| Fiscal Resource |
282.9 |
277.1 |
306.4 |
| Non-cash |
167.5 |
168.6 |
209.5 |
| Capital |
426.0 |
355.5 |
495.5 |
| Financial Transactions (FTs) |
– |
– |
– |
| UK Funded AME |
– |
– |
– |
Table A4.07: Ferry Services Spending Plans (Level 3)
| Level 3 |
2022-23 Budget £m |
2023-24 Budget £m |
2024-25 Budget £m |
| Support for Ferry Services |
228.5 |
251.0 |
309.6 |
| Vessels and Piers |
67.5 |
189.0 |
124.9 |
| Total Ferry Services |
296.0 |
440.0 |
434.5 |
| of which |
|
|
|
| Fiscal Resource |
206.7 |
229.2 |
275.6 |
| Non-cash |
– |
– |
– |
| Capital |
89.3 |
210.8 |
158.9 |
| Financial Transactions (FTs) |
– |
– |
– |
| UK Funded AME |
– |
– |
– |
Table A4.08: Air Services Spending Plans (Level 3)
| Level 3 |
2022-23 Budget £m |
2023-24 Budget £m |
2024-25 Budget £m |
| Highlands and Islands Airports Limited |
71.4 |
69.0 |
71.2 |
| Support for Air Services |
17.2 |
14.5 |
18.0 |
| Total Air Services |
88.5 |
83.5 |
89.3 |
| of which |
|
|
|
| Fiscal Resource |
58.6 |
56.4 |
57.5 |
| Non-cash |
9.5 |
9.5 |
9.5 |
| Capital |
20.4 |
17.6 |
22.3 |
| Financial Transactions (FTs) |
– |
– |
– |
| UK Funded AME |
– |
– |
– |
Table A4.09: Environmental Services Spending Plans (Level 3)
| Level 3 |
2022-23 Budget £m |
2023-24 Budget £m |
2024-25 Budget £m |
| National Parks |
19.1 |
21.6 |
21.8 |
| Environmental Quality |
13.4 |
9.5 |
6.5 |
| Nature Restoration |
24.5 |
27.8 |
29.2 |
| Scottish Environmental Protection Agency |
41.6 |
49.0 |
52.6 |
| NatureScot |
50.8 |
61.6 |
65.6 |
| Zero Waste |
42.9 |
46.9 |
48.9 |
| Total Environmental Services |
192.3 |
216.5 |
224.6 |
| of which |
|
|
|
| Fiscal Resource |
135.0 |
141.6 |
149.2 |
| Non-cash |
11.3 |
9.5 |
9.8 |
| Capital |
45.9 |
65.3 |
65.5 |
| Financial Transactions (FTs) |
– |
– |
– |
| UK Funded AME |
0.1 |
0.1 |
0.1 |
Table A4.10: Environmental Standards Scotland Spending Plans (Level 3)
| Level 3 |
2022-23 Budget £m |
2023-24 Budget £m |
2024-25 Budget £m |
| Environmental Standards Scotland |
2.2 |
2.9 |
3.0 |
| Total Environmental Standards Scotland |
2.2 |
2.9 |
3.0 |
| of which |
|
|
|
| Fiscal Resource |
2.2 |
2.9 |
3.0 |
| Non-cash |
– |
– |
– |
| Capital |
– |
– |
– |
| Financial Transactions (FTs) |
– |
– |
– |
| UK Funded AME |
– |
– |
– |
Table A4.11: Climate Change and Land Managers Renewables Spending Plans (Level 3)
| Level 3 |
2022-23 Budget £m |
2023-24 Budget £m |
2024-25 Budget £m |
| Climate Action and Policy |
25.3 |
29.7 |
29.0 |
| Land Managers Renewables Fund |
0.5 |
0.2 |
– |
| Just Transition Fund |
24.0 |
50.0 |
12.2 |
| Total Climate Change and Land Managers Renewables |
49.8 |
79.9 |
41.2 |
| of which |
|
|
|
| Fiscal Resource |
25.8 |
29.9 |
29.0 |
| Non-cash |
– |
– |
– |
| Capital |
14.0 |
25.0 |
12.2 |
| Financial Transactions (FTs) |
10.0 |
25.0 |
– |
| UK Funded AME |
– |
– |
– |
Table A4.12: Scottish Water Spending Plans (Level 3)
| Level 3 |
2022-23 Budget £m |
2023-24 Budget £m |
2024-25 Budget £m |
| Interest on Voted Loans |
(105.0) |
(105.0) |
(105.5) |
| Voted Loans |
170.0 |
170.0 |
170.0 |
| Hydro Nation |
4.7 |
3.5 |
2.8 |
| Drinking Water Quality Regulator |
0.9 |
0.4 |
0.4 |
| Private Water |
6.8 |
6.8 |
6.8 |
| Total Scottish Water |
77.4 |
75.7 |
74.6 |
| of which |
|
|
|
| Fiscal Resource |
(97.6) |
(99.3) |
(100.4) |
| Non-cash |
– |
– |
– |
| Capital |
175.0 |
175.0 |
175.0 |
| Financial Transactions (FTs) |
– |
– |
– |
| UK Funded AME |
– |
– |
– |
Table A4.13: Green Economy Spending Plans (Level 3)
| Level 3 |
2022-23 Budget £m |
2023-24 Budget £m |
2024-25 Budget £m |
| Total Green Economy |
12.3 |
5.1 |
– |
| of which |
|
|
|
| Fiscal Resource |
1.0 |
– |
– |
| Non-cash |
– |
– |
– |
| Capital |
11.3 |
5.1 |
– |
| Financial Transactions (FTs) |
– |
– |
– |
| UK Funded AME |
– |
– |
– |
Table A4.14: Central Government Grants to Local Authorities (Level 3)
| Level 3 |
2022-23 Budget £m |
2023-24 Budget £m |
2024-25 Budget £m |
| Cycling, Walking and Safer Routes |
23.9 |
23.9 |
23.9 |
| Support for Inter-Island Ferries |
19.2 |
19.2 |
27.8 |
| Regional Transport Partnership |
15.3 |
15.3 |
– |
| Total Central Gov. Grants to Local Authorities |
58.4 |
58.4 |
51.7 |
